omniture

MY Reports Third Quarter 2011 Unaudited Results with Solid Growth in Revenue

ZHONGSHAN, China, November 10, 2011 /PRNewswire-Asia/ -- China Ming Yang Wind Power Group Limited ("Ming Yang" or the "Company") (NYSE: MY), a leading wind turbine manufacturer in China, today announced its unaudited financial results for the third quarter ended September 30, 2011.

Revenue in the third quarter of 2011 was RMB1,904.8 million (US$298.7 million). This compares with RMB1,486.0 million in the corresponding period in 2010. The year-over-year increase was primarily due to an increased number of wind turbine generators ("WTGs") commissioned which amounted to equivalent wind power project output of 555MW, or 370 units of 1.5MW WTGs, compared to 359MW for the corresponding period in 2010.

Gross profit in the third quarter of 2011 was RMB305.6 million (US$47.9 million). This compares with RMB248.7 million for the corresponding period in 2010. The year-over-year increase was primarily due to an increased number of WTGs commissioned. Gross margin in the third quarter of 2011 was 16.0%, compared to 16.7% for the corresponding period in 2010.

Operating expenses, as a percentage of revenue for the third quarter of 2011 was 8.8%, or 5.8% excluding share-based compensation charges of RMB28.4 million and provision against trade receivables of RMB28.7 million, compared to 5.5% for the corresponding period of 2010. There was no share-based compensation charges recorded in the third quarter of 2010. Operating expenses are defined as the sum of selling and distribution expenses, administrative expenses, and research and development expenses.

Net finance expense was RMB16.3 million (US$2.6 million) for the third quarter of 2011, compared to a net finance income of RMB9.4 million in the corresponding period in 2010. The increase in finance expense for the period was primarily due to the fee for finance leases of customers for the settlement of our trade receivables.

Income tax expense was RMB28.4 million (US$4.5 million) for the third quarter of 2011, compared to RMB8.7 million in the corresponding period in 2010. The increase was primarily because we recognized certain unrecognized deferred tax assets in the third quarter of 2010.

Profit for the period for the third quarter of 2011 was RMB102.7 million (US$16.1 million), compared to RMB177.4 million in the corresponding period in 2010.

Basic and diluted earnings per share for the third quarter of 2011 was RMB0.82 (US$0.13), compared to RMB1.70 in the corresponding period in 2010.

Cash and cash equivalents as of September 30, 2011 was RMB1,423.7 million (US$223.2 million). This compares with RMB2,486.0 million as of December 31, 2010.

Mr. Chuanwei Zhang, Chairman and CEO of Ming Yang, remarked, "We are pleased to report solid growth this quarter amidst a challenging macro and industry environment. We were able to deliver a 28.2% year-over-year growth in revenue as a result of strong demand for our differentiated WTGs. Our revenue recognized from WTGs commissioned amounted to equivalent wind power projects output of 555MW, representing a 54.8% year-over-year growth. We also entered into new sales contracts representing an aggregate output of 295.5MW during the quarter, which demonstrated continued strong customer demands for our WTGs."

Mr. Zhang added, "2011 is a year of change for the wind power industry in China. Change in the regulatory environment is expected to pave ways for a healthier development of the industry. We believe the focus has shifted from size and speed to quality and efficiency. We believe Ming Yang's continued commitment and efforts in product quality enhancement and development have placed us in a favorable position and the results in this quarter are a solid endorsement of our efforts and success."

"As the Chinese wind power industry moves from government-led to market-led competition, companies with strong core competencies should excel and lead both domestically and internationally. Our differentiated WTGs, research and development technologies, innovative business model and integrated high-end supply chain, as well as off-shore wind power and hybrid solution capabilities, enable us to be well-positioned to capture market opportunities and to further expand our market share. Our efforts in developing international markets are also expected to contribute to our medium term growth. In addition, the US$5 billion in potential financing from China Development Bank Corp. ("CDB"), a government policy bank wholly owned by China's central government, between 2011 to 2015, can supply additional support for our new wind power projects and business expansion and further enhance our prospects and opportunities. The Company cautions that any future financings from CDB are subject to further terms and conditions to be negotiated between Ming Yang and CDB, and there can be no assurance how much or when, if at all, any future financings would be granted."

As of September 30, 2011, the Company's order backlog was 1,885.5MW. The number of orders awarded and pending contract signing amounted to 1,248.5MW.

Business Outlook for Full Year 2011

For the full year of 2011, the Company targets to recognize revenue from WTGs equivalent to wind power projects with a total output of 1.8GW to 2.0GW. This outlook reflects our current and preliminary view based on current market and operating conditions such as adverse weather conditions affecting the installation and commissioning of our WTGs, and may be subject to change, which may be material. Our ability to achieve this outlook is subject to significant risks. See "Safe Harbor Statement" below.

Currency Conversion

Solely for the convenience of readers, certain Renminbi amounts have been translated into U.S. dollar amounts at the rate of RMB6.3780 to US$1.00, the noon buying rate in New York for cable transfers of Renminbi for U.S. dollars on September 30, 2011 as set forth in the H.10 weekly statistical release of the Federal Reserve Board. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollar amounts at such rate or at any other rate.

Financial Information

The preliminary unaudited consolidated statements of comprehensive income and consolidated statements of financial position accompanying this press release have been prepared by management using International Financial Reporting Standards, or IFRSs. This preliminary financial information is not intended to fully comply with IFRSs because it does not present all of the financial information and disclosures required by IFRSs.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "goal," "strategy" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Ming Yang's control, which may cause Ming Yang's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Ming Yang's filings with the U.S. Securities and Exchange Commission. Ming Yang does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Conference Call

Ming Yang's senior management will host a conference call on Thursday, November 10, 2011 at 8:00 am Eastern Time / 5:00 am Pacific Time / 9:00 pm Beijing Time to discuss its quarterly results and recent business activities.

To access the conference call, please dial:

United States:

+1 866 519 4004

International (toll):

+65 6723 9381

China, Domestic Mobile:

400 620 8038

China, Domestic:

800 819 0121

Hong Kong:

800 930 346



Please ask to be connected to Q3 2011 China Ming Yang Wind Power Group Limited Earnings Conference Call and provide the following passcode: Ming Yang.

Ming Yang will also broadcast a live audio webcast of the conference call. The broadcast will be available by visiting the "Investor Relations" section of the Company's web site at http://ir.mywind.com.cn.

Following the earnings conference call, an archive of the call will be available by dialing:


United States:

+1 866 214 5335

International (toll):

+61 2 8235 5000

China North

10 800 714 0386

China South

10 800 140 0386

Hong Kong

800 901 596

Passcode

20007202




The replay will be archived for seven days following the earnings announcement until November 17, 2011.

About China Ming Yang Wind Power Group Limited

China Ming Yang Wind Power Group Limited (NYSE: MY) is a leading and fast-growing wind turbine manufacturer in China, focusing on designing, manufacturing, selling and servicing megawatt-class wind turbines. Ming Yang produces advanced, highly adaptable wind turbines with high energy output and low energy production costs and provides customers with comprehensive post-sales services. Ming Yang cooperates with aerodyn Energiesysteme, one of the world's leading wind turbine design firms based in Germany, to develop wind turbines and share intellectual property rights. Ming Yang's key customers include the five largest state-owned power producers in China, with an aggregate installed capacity accounting for more than 50% of China's newly installed capacity in 2010. For further information, please visit the Company's website: www.mywind.com.cn.

For investor and media inquiries, please contact:


China Ming Yang Wind Power Group Limited


Calvin Lau


Phone: +86 760 2813 8898


Email: calvin.lau@mywind.com.cn




Fleishman-Hillard


New York

Hong Kong

Kristen Lewko

Pamela Leung

Phone: +1 212 453 2212

Phone: +852 2530 0228

Email: ir@mywind.com.cn

Email: ir@mywind.com.cn







CHINA MING YANG WIND POWER GROUP LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts expressed in thousands, except share and ADS data)




For the three-month period ended



September 30,


September 30,


September 30,



2010


2011


2011



RMB'000


RMB'000


USD'000








Revenue


1,485,963


1,904,809


298,653

Cost of sales


(1,237,309)


(1,599,223)


(250,741)

Gross profit


248,654


305,586


47,912

Other income


9,611


6,410


1,005

Selling and distribution expenses


(29,742)


(61,375)


(9,623)

Administrative expenses


(45,084)


(87,076)


(13,653)

Research and development expenses


(6,191)


(19,159)


(3,004)

Profit from operations


177,248


144,386


22,637

Finance income


22,948


16,490


2,586

Finance expense


(13,575)


(32,793)


(5,141)

Share of (loss)/profit of associates, net of income tax expense


(588)


2,977


467

Profit before income tax expense


186,033


131,060


20,549

Income tax expense


(8,682)


(28,388)


(4,451)

Profit for the period


177,351


102,672


16,098

Other comprehensive loss







Foreign currency translation differences - foreign operations


-


(14,232)


(2,231)

Total comprehensive income for the period


177,351


88,440


13,867








Profit attributable to:







Shareholders of the Company


170,018


101,908


15,978

Non-controlling interest


7,333


764


120



177,351


102,672


16,098

Total comprehensive income attributable to:







Shareholders of the Company


170,018


87,676


13,747

Non-controlling interest


7,333


764


120



177,351


88,440


13,867








Basic and diluted earnings per share(1)


1.70


0.82


0.13








(1) The calculation of the basic earnings per share is based on the profit attributable to the shareholders of the Company and the weighted average of ordinary shares in issue during the relevant period.






CHINA MING YANG WIND POWER GROUP LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Amounts expressed in thousands)





As of


As of


As of




December 31,


September 30,


September 30,




2010


2011


2011




RMB'000


RMB'000


USD'000

Assets








Property, plant and equipment


351,312


423,175


66,349


Intangible assets


86,334


77,713


12,185


Lease prepayments


66,342


79,015


12,389


Investment in associates


41,362


43,344


6,796


Trade and other receivables


231,003


403,295


63,232


Prepayments


16,495


39,648


6,216


Deferred tax assets


77,366


102,205


16,025


Total non-current assets


870,214


1,168,395


183,192


Inventories


1,895,205


1,342,518


210,492


Trade and other receivables


2,895,802


5,445,655


853,819


Prepayments


201,141


259,139


40,630


Other current assets


11,444


12,815


2,009


Pledged bank deposits


131,967


174,153


27,305


Cash and cash equivalents


2,485,972


1,423,710


223,222


Total current assets


7,621,531


8,657,990


1,357,477

Total assets


8,491,745


9,826,385


1,540,669

Equity








Issued share capital


850


850


133


Reserve for own shares


-


(29,790)


(4,671)


Capital reserves


3,514,932


3,611,628


566,263


Translation reserves


(19,156)


(51,473)


(8,070)


(Accumulated losses)/retained earnings


(39,282)


371,658


58,272


Total equity attributable to shareholders of the Company


3,457,344


3,902,873


611,927


Non-controlling interest


69,853


73,065


11,456

Total equity


3,527,197


3,975,938


623,383

Liabilities








Provisions


112,726


176,868


27,731


Trade payables


38,525


101,795


15,960


Deferred income


115,468


168,907


26,483


Total non-current liabilities


266,719


447,570


70,174


Trade and other payables


3,632,542


4,599,158


721,097


Short-term bank loans


480,000


309,000


48,448


Income tax payable


43,506


38,348


6,013


Provisions


98,391


165,865


26,006


Deferred income


11,381


22,812


3,577


Deferred revenue


432,009


267,694


41,971


Total current liabilities


4,697,829


5,402,877


847,112

Total liabilities


4,964,548


5,850,447


917,286

Total equity and liabilities


8,491,745


9,826,385


1,540,669





Source: China Ming Yang Wind Power Group Limited
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